October 02, 2014

Case Notes Hughes V. McCarthy - Article co-authored by Rene Reixach, Esq.

The decision in Hughes v. McCarthy1 has hopefully put to rest an argument many states have made about the extent to which an institutionalized spouse can transfer assets to the community spouse without causing a "penalty period" of ineligibility under the transfer of assets rules, at least with respect to pre-eligibility transfers. A number of states took the position that such an interspousal transfer would result in a transfer of assets penalty because it brought the assets of the community spouse over the community spouse resource allowance (CSRA), which is half the couple's resources, subject to a minimum of $23,448 and a maximum of $117,240 in most states in 2014.

To read the complete case, click on the link below: